37740 Federal Register / Vol. 63, No. 133 / Monday, July 13, 1998 /Rules and Regulations

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 178

[T.D. ATF–402; Ref: Notice No. 855]

RIN 1512–AB68

Posting of Signs and Written

Notification to Purchasers of

Handguns

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Final rule.

SUMMARY: The Bureau of Alcohol,

Tobacco and Firearms (ATF) is

amending the firearms regulations to

require that signs be posted on the

premises of Federal firearms licensees

and that written notification be issued

with each handgun sold advising of the

provisions of the Youth Handgun Safety

Act.

EFFECTIVE DATE: September 11, 1998.

FOR FURTHER INFORMATION CONTACT:

Marsha D. Baker, Regulations Division,

Bureau of Alcohol, Tobacco and

Firearms, Washington, DC 20226 (202–

927–8210).

SUPPLEMENTARY INFORMATION:

Background

The Youth Handgun Safety Act

(YHSA), 18 U.S.C. 922(x), generally

makes it unlawful for a person to

transfer a handgun to anyone under 18

years of age or for anyone under 18

years of age to knowingly possess a

handgun. Certain exceptions are set

forth in the statute.

In enacting the YHSA in 1994,

Congress found that criminal misuse of

firearms often starts with the easy

availability of guns to juvenile gang

members. In addition, Congress found

that individual States and localities may

find it difficult to control this problem

by themselves. Therefore, Congress

found it necessary and appropriate to

assist the States in controlling violent

crime by stopping the commerce in

handguns with juveniles nationwide

and allowing the possession of

handguns by juveniles only when

handguns are possessed and used under

certain limited circumstances.

In a memorandum to the Secretary of

the Treasury dated June 11, 1997, the

President stated that a major problem in

our nation is the ease with which young

people gain illegal access to guns. The

President observed that firearms are

now responsible for 12 percent of

fatalities among American children and

teenagers.

The President’s memorandum

directed the Secretary of the Treasury to

propose regulations that would require

the posting of signs and issuance of

written notices warning handgun

purchasers of the provisions of the

YHSA.

Notice of Proposed Rulemaking

In response to the concerns raised by

the President’s memorandum, ATF

published Notice No. 855 in the Federal

Register (62 FR 45364) on August 27,

1997. To enforce the provisions of the

YHSA and to ensure that handgun

purchasers are familiar with its

provisions, the Notice of Proposed

Rulemaking (NPRM) proposed

regulations requiring that signs be

posted on the premises of Federal

firearms licensees and that written

notification be issued by licensees to

nonlicensed handgun purchasers

warning as follows:

(1) Federal law prohibits, except in certain

limited circumstances, anyone under 18

years of age from knowingly possessing a

handgun, or any person from transferring a

handgun to a person under 18;

(2) A violation of the prohibition against

transferring a handgun to a person under the

age of 18 is, under certain circumstances,

punishable by up to 10 years in prison;

(3) Handguns are a leading contributor to

juvenile violence and fatalities; and

(4) Safely storing and locking handguns

away from children can help ensure

compliance with Federal law.

The proposed rule stipulated that

signs provided by ATF must be posted

by licensed importers, manufacturers

and dealers on their licensed premises

where prospective handgun purchasers

can readily see them. In addition, the

written notification to be issued to each

handgun purchaser must be made

available either by providing the

purchaser with an ATF Publication or

some other type of written notification

that contains the same language, e.g., a

manufacturer’s or importer’s instruction

manual or brochure provided to the

handgun purchaser.

Analysis of Comments

ATF received sixty-two (62)

comments during the comment period

in response to Notice No. 855. These

comments were received from fifty-three

(53) members of the public, one (1)

Member of Congress, four (4) Federal

firearms licensees (FFLs), and four (4)

firearms industry organizations. Five (5)

of the respondents were in agreement

with the proposed regulations. Fiftyseven (57) respondents opposed certain

provisions of the proposed regulations.

Comments in Support of the Proposed

Rule

The American Academy of Pediatrics

(AAP) commented in favor of the

proposed regulations. The AAP stated

that ‘‘Firearms play a major role in

childhood morbidity and mortality in

the United States.’’ They went on to

comment that ‘‘the surest way to reduce

the effects of firearm-trauma on children

is to remove handguns from the

environments in which children live

and play.’’ The Academy also supported

the inclusion of curios and relics in the

proposed rule as well as the notification

at the time that weapons are returned to

their owners by an FFL (for example,

when a firearm is redeemed from pawn).

Handgun Control Inc. (HCI) also

commented in support of the proposed

regulations. They agreed that ATF had

the authority to issue regulations

necessary to implement the Gun Control

Act (GCA). They stated that

‘‘notification to handgun buyers at the

point of purchase of the need to safely

secure handguns away from children is

certainly necessary to implement the

provisions of the statute.’’

HCI suggested that the written notice

provided to the purchasers of handguns

not be included as part of a larger

Federal form, but should instead be

separately contained in one publication.

In response to this comment, it should

be noted that the NPRM did not specify

the publication number of the proposed

required written notice since one had

not yet been assigned. However, the

final rule clarifies that the written notice

will appear on an ATF publication (ATF

I 5300.2) that is separate from any

existing ATF form.

Seven (7) additional respondents

agreed with the general purpose of the

proposed regulations; to reduce the ease

with which juveniles have access to

handguns which are then used to

commit crimes or which result in youth

fatalities. However, they were opposed

to the wording of the provisions

outlined in the proposed rule.

Rephrasing of the provisional language

and certain deletions were suggested.

For example, Sturm, Ruger &

Company, Inc., a manufacturer of

firearms, commented that ‘‘while we

have no objection to reminding dealers

of their serious responsibilities

regarding sales of firearms to

unauthorized persons, the proposed

language goes far beyond that.’’

Accordingly, they suggested several

revisions of the proposed regulations.

The suggested revisions to the language

of the notice and sign will be discussed

in detail below.
Federal Register / Vol. 63, No. 133 / Monday, July 13, 1998 /Rules and Regulations 37741

Comments in Opposition to the

Proposed Rule

Several commenters challenged ATF’s

authority under the GCA to require any

sort of warning or notification to

purchasers of handguns regarding the

requirements of the YHSA. A comment

from Rep. John Dingell urged ATF to

withdraw the proposed rule for several

reasons, including his view that the

statutory basis for ATF’s action is

‘‘uncertain.’’ He noted that ATF has not

required notices or signs to warn

purchasers about other GCA provisions

and the statutory prohibitions on the

possession of firearms by certain

categories of people, including felons.

ATF does not agree that requiring

licensees to inform prospective handgun

purchasers about the requirements of

the law goes beyond its authority to

enforce the GCA. Furthermore, this type

of requirement is not unprecedented.

While ATF has not required licensees to

post signs or hand out notices regarding

other GCA provisions, many of these

provisions are made known to

purchasers through other means. For

example, licensees are required to have

unlicensed purchasers complete an ATF

Form 4473, Firearms Transaction

Record. On this form, purchasers certify

that they do not fall within one of the

categories of persons prohibited from

purchasing a firearm. The Form 4473

contains a detailed explanation of

various GCA provisions.

ATF believes that it is important to

advise handgun purchasers of the still

relatively new requirements of the

YHSA to ensure that adult purchasers

who are purchasing a handgun from a

licensee are made aware that it is

unlawful to transfer handguns to

juveniles. This statutory provision is not

addressed on the Form 4473. ATF

believes that the final rule will

accomplish the goal of preventing

inadvertent violations of the law

without unduly burdening licensees or

handgun purchasers. Furthermore,

ATF’s statutory authority to issue

regulations to implement the GCA is

clear. See 18 U.S.C. 926(a).

Revisions Made in Response to

Comments

After carefully considering the

comments received following the

publication of the NPRM, ATF has

decided that certain revisions should be

made to the written notification and

sign required by the regulations. These

modifications are discussed in more

detail below.

In reference to the first paragraph of

the proposed notice and sign, fortyseven (47) commenters suggested that

the language was vague and that the

sign Federal firearms licensees would be

required to post, as well as the written

notification, should accurately explain

the exceptions included in the YHSA

that would allow the lawful transfer to,

or possession by, an individual under

the age of 18 years. For example, the

Sporting Arms and Ammunition

Manufacturers’ Institute (SAAMI)

suggested that this item should ‘‘include

a thorough, accurate and objective

explanation of these circumstances and/

or include the language of the statute

itself.’’ The National Rifle Association

(NRA) commented that ‘‘[a]t the very

least, the entire text of the law should

be given, especially outlining the full

text of these exceptions * * *’’

ATF recognizes that there are

exceptions listed in the YHSA that

allow persons under 18 years of age to

receive and possess a handgun, and the

proposed language referred to these

limited circumstances. However, ATF

believes that a detailed discussion of the

exceptions would have been too long to

include in the notice and sign.

Nonetheless, ATF agrees with the

respondents who suggested that the

proposed language of the notice and

sign might raise questions in the minds

of purchasers as to when it was lawful

for a juvenile to possess a handgun.

Accordingly, ATF is adopting the

suggestion of those commenters who

advocated that the written notification

set forth the entire language of the

statute. The final rule provides that the

required written notification (ATF I

5300.2) will include the complete

language of the statutory provision

appearing at 18 U.S.C. section 922(x),

including the exceptions. Owing to the

length of this statutory language, the

sign will merely refer the purchaser to

the ATF I 5300.2 for the complete

provisions of the law. The sign will also

advise the public that a copy of this

publication may be obtained from the

licensee posting the sign or from the

ATF Distribution Center.

In reference to the second provision of

the notice and sign, forty-three (43) of

the respondents again stated that the

language was vague and that the sign

and written notification should more

specifically set forth the exceptions

included in the YHSA that would allow

the lawful possession of a handgun by

a juvenile in certain limited

circumstances. In addition, four (4)

respondents stated that the reference to

the maximum penalty provided by law

for a violation of section 922(x) was

misleading, since the maximum penalty

only applied in limited circumstances.

As previously noted, the final rule

provides that the written notification

will contain the entire language of

section 922(x), so that interested

handgun purchasers may read for

themselves the exceptions outlined in

the statute. ATF has also included in the

written notification the full text of the

penalty provision set forth in 18 U.S.C.

924(a)(6) for violations of section 922(x).

Again, the sign will refer the purchaser

to the complete language of the law as

outlined in the written notification. We

believe that this will ensure that

purchasers of handguns receive

complete and accurate information as to

the statutory penalties imposed on

violations of section 922(x).

The NRA noted that the proposed

regulations do not mention the statutory

restrictions on the transfer to juveniles

and use by juveniles of ammunition that

is suitable only in a handgun. As noted

previously, the entire provisions of the

law will be set forth in the written

notification. This includes the statutory

provisions regarding handgun

ammunition.

In reference to the third provision of

the proposed regulations, seventeen (17)

respondents opposed the inclusion of

the language that ‘‘handguns are a

leading contributor to juvenile violence

and fatalities.’’ Another fifteen (15)

stated that this provision should be

deleted entirely. Many commenters

suggested that the entire statement

offered value judgments, and argued

that it was the perpetrators of the

shooting, not the handguns used in the

shooting, that contributed to juvenile

violence and fatalities.

The proposed language was not

intended to convey the message that

handguns alone are responsible for

juvenile violence. In fact the language

noted that handguns were a

‘‘contributor’’ to juvenile violence.

However, ATF agrees with the

commenters who suggested that this

provision could be clarified. For

example, Sturm, Ruger & Company

suggested that the language be modified

to refer to the misuse of illegally

possessed firearms. ATF has partially

adopted this comment. As set forth in

the final rule, this provision now states

that ‘‘The misuse of handguns is a

leading contributor to juvenile violence

and fatalities.’’

In reference to the fourth and final

provision of the proposed statement,

fifteen (15) of the respondents believed

that it was unnecessary to have safety

warning notices for firearms. Another

twelve (12) stated that this provision

should be deleted entirely.

Many of the commenters noted that

there is no Federal law mandating a

specific type of storage or locking

requirement for handguns. For example,
37742 Federal Register / Vol. 63, No. 133 / Monday, July 13, 1998 /Rules and Regulations

the NRA commented that ‘‘the proposed

warning concerning the safe storage and

locking of handguns is not only

superfluous, but also implies that there

is a Federal law requiring these safety

measures.’’

However, some comments supported

the inclusion of a generic statement

encouraging the safe storing and

securing of firearms in order to prevent

accidents. For example, SAAMI stated

that they would support the ‘‘[i]nclusion

of a statement that safely storing and

securing firearms can prevent

accidents.’’ On the other hand, HCI

suggested that the notice be revised to

more explicitly state what is meant by

‘‘safely storing and locking handguns

away from children.’’

ATF does not agree that the original

proposed language implied that there

was a Federal law requiring that

handguns be stored or locked in a

particular fashion. However, in response

to the comments received on this issue,

the final rule modifies the language of

this provision to state that ‘‘Safely

storing and securing firearms away from

children will help prevent the unlawful

possession of handguns by juveniles,

stop accidents, and save lives.’’ This

statement encourages handgun owners

to ensure compliance with the law as

well as to promote general gun safety.

Finally, the order of the four

provisions has been rearranged for

purposes of clarity. The revised

language of the sign and notice is

reflected in the regulations portion of

this Treasury Decision.

Regulatory Flexibility Act

It is hereby certified under the

provisions of Section 3 of the Regulatory

Flexibility Act, 5 U.S.C. 605(b), that this

final rule will not have a significant

economic impact on a substantial

number of small entities. The notices

and signs that are required in this

document will be provided free of

charge by the Federal Government to

Federal firearms licensees. Licensees

may choose to provide the required

written notice in another format;

however, they always have the option of

using the notices provided by ATF.

Moreover, the new requirements

relating to the posting of signs and the

distribution of notices will place only a

minimal burden on firearms licensees.

Accordingly, a regulatory flexibility

analysis is not required.

Executive Order 12866

It has been determined that this

regulation is not a significant regulatory

action as defined by Executive Order

12866. Accordingly, this regulation is

not subject to the analysis required by

this Executive Order.

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act of 1995, 44 U.S.C.

chapter 35, and its implementing

regulations, 5 CFR part 1320, do not

apply to this final rule because no new

reporting or recordkeeping requirements

are imposed.

List of Subjects in 27 CFR Part 178

Administrative practice and

procedure, Arms and ammunition,

Authority delegations, Customs duties

and inspections, Exports, Imports,

Military personnel, Penalties, Reporting

requirements, Research, Seizures and

forfeitures, and Transportation.

Authority and Issuance

PART 178—[AMENDED]

Part 178—Commerce in Firearms and

Ammunition is amended as follows:

Paragraph 1. The authority citation

for 27 CFR Part 178 continues to read

as follows:

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847,

921–930; 44 U.S.C. 3504(h).

Par. 2. Section 178.103 is added to

Subpart F to read as follows:

§ 178.103 Posting of signs and written

notification to purchasers of handguns.

(a) Each licensed importer,

manufacturer, dealer, or collector who

delivers a handgun to a nonlicensee

shall provide such nonlicensee with

written notification as described in

paragraph (b) of this section.

(b) The written notification (ATF I

5300.2) required by paragraph (a) of this

section shall state as follows:

(1) The misuse of handguns is a leading

contributor to juvenile violence and fatalities.

(2) Safely storing and securing firearms

away from children will help prevent the

unlawful possession of handguns by

juveniles, stop accidents, and save lives.

(3) Federal law prohibits, except in certain

limited circumstances, anyone under 18

years of age from knowingly possessing a

handgun, or any person from transferring a

handgun to a person under 18.

(4) A knowing violation of the prohibition

against selling, delivering, or otherwise

transferring a handgun to a person under the

age of 18 is, under certain circumstances,

punishable by up to 10 years in prison.

FEDERAL LAW

The Gun Control Act of 1968, 18 U.S.C.

Chapter 44, provides in pertinent part as

follows:

18 U.S.C. 922(x)

(x)(1) It shall be unlawful for a person to

sell, deliver, or otherwise transfer to a person

who the transferor knows or has reasonable

cause to believe is a juvenile—

(A) a handgun; or

(B) ammunition that is suitable for use only

in a handgun.

(2) It shall be unlawful for any person who

is a juvenile to knowingly possess—

(A) a handgun; or

(B) ammunition that is suitable for use only

in a handgun.

(3) This subsection does not apply to—

(A) a temporary transfer of a handgun or

ammunition to a juvenile or to the possession

or use of a handgun or ammunition by a

juvenile if the handgun and ammunition are

possessed and used by the juvenile—

(i) in the course of employment, in the

course of ranching or farming related to

activities at the residence of the juvenile (or

on property used for ranching or farming at

which the juvenile, with the permission of

the property owner or lessee, is performing

activities related to the operation of the farm

or ranch), target practice, hunting, or a course

of instruction in the safe and lawful use of

a handgun;

(ii) with the prior written consent of the

juvenile’s parent or guardian who is not

prohibited by Federal, State, or local law

from possessing a firearm, except—

(I) during transportation by the juvenile of

an unloaded handgun in a locked container

directly from the place of transfer to a place

at which an activity described in clause (i)

is to take place and transportation by the

juvenile of that handgun, unloaded and in a

locked container, directly from the place at

which such an activity took place to the

transferor; or

(II) with respect to ranching or farming

activities as described in clause (i) a juvenile

may possess and use a handgun or

ammunition with the prior written approval

of the juvenile’s parent or legal guardian and

at the direction of an adult who is not

prohibited by Federal, State, or local law

from possessing a firearm;

(iii) the juvenile has the prior written

consent in the juvenile’s possession at all

times when a handgun is in the possession

of the juvenile; and

(iv) in accordance with State and local law;

(B) a juvenile who is a member of the

Armed Forces of the United States or the

National Guard who possesses or is armed

with a handgun in the line of duty;

(C) a transfer by inheritance of title (but not

possession) of a handgun or ammunition to

a juvenile; or

(D) the possession of a handgun or

ammunition by a juvenile taken in defense of

the juvenile or other persons against an

intruder into the residence of the juvenile or

a residence in which the juvenile is an

invited guest.

(4) A handgun or ammunition, the

possession of which is transferred to a

juvenile in circumstances in which the

transferor is not in violation of this

subsection shall not be subject to permanent

confiscation by the Government if its

possession by the juvenile subsequently

becomes unlawful because of the conduct of

the juvenile, but shall be returned to the

lawful owner when such handgun or

ammunition is no longer required by the
Federal Register / Vol. 63, No. 133 / Monday, July 13, 1998 /Rules and Regulations 37743

Government for the purposes of investigation

or prosecution.

(5) For purposes of this subsection, the

term ‘‘juvenile’’ means a person who is less

than 18 years of age.

(6)(A) In a prosecution of a violation of this

subsection, the court shall require the

presence of a juvenile defendant’s parent or

legal guardian at all proceedings.

(B) The court may use the contempt power

to enforce subparagraph (A).

(C) The court may excuse attendance of a

parent or legal guardian of a juvenile

defendant at a proceeding in a prosecution of

a violation of this subsection for good cause

shown.

18 U.S.C. 924(a)(6)

(6)(A)(i) A juvenile who violates section

922(x) shall be fined under this title,

imprisoned not more than 1 year, or both,

except that a juvenile described in clause (ii)

shall be sentenced to probation on

appropriate conditions and shall not be

incarcerated unless the juvenile fails to

comply with a condition of probation.

(ii) A juvenile is described in this clause

if—

(I) the offense of which the juvenile is

charged is possession of a handgun or

ammunition in violation of section 922(x)(2);

and

(II) the juvenile has not been convicted in

any court of an offense (including an offense

under section 922(x) or a similar State law,

but not including any other offense

consisting of conduct that if engaged in by an

adult would not constitute an offense) or

adjudicated as a juvenile delinquent for

conduct that if engaged in by an adult would

constitute an offense.

(B) A person other than a juvenile who

knowingly violates section 922(x)—

(i) shall be fined under this title,

imprisoned not more than 1 year, or both;

and

(ii) if the person sold, delivered, or

otherwise transferred a handgun or

ammunition to a juvenile knowing or having

reasonable cause to know that the juvenile

intended to carry or otherwise possess or

discharge or otherwise use the handgun or

ammunition in the commission of a crime of

violence, shall be fined under this title,

imprisoned not more than 10 years, or both.

(c) This written notification shall be

delivered to the nonlicensee on ATF I

5300.2, or in the alternative, the same

written notification may be delivered to

the nonlicensee on another type of

written notification, such as a

manufacturer’s or importer’s brochure

accompanying the handgun; a

manufacturer’s or importer’s operational

manual accompanying the handgun; or

a sales receipt or invoice applied to the

handgun package or container delivered

to a nonlicensee. Any written

notification delivered to a nonlicensee

other than on ATF I 5300.2 shall

include the language set forth in

paragraph (b) of this section in its

entirety. Any written notification other

than ATF I 5300.2 shall be legible, clear,

and conspicuous, and the required

language shall appear in type size no

smaller than 10-point type.

(d) Except as provided in paragraph

(f) of this section, each licensed

importer, manufacturer, or dealer who

delivers a handgun to a nonlicensee

shall display at its licensed premises

(including temporary business locations

at gun shows) a sign as described in

paragraph (e) of this section. The sign

shall be displayed where customers can

readily see it. Licensed importers,

manufacturers, and dealers will be

provided with such signs by ATF.

Replacement signs may be requested

from the ATF Distribution Center.

(e) The sign (ATF I 5300.1) required

by paragraph (d) of this section shall

state as follows:

(1) The misuse of handguns is a leading

contributor to juvenile violence and fatalities.

(2) Safely storing and securing firearms

away from children will help prevent the

unlawful possession of handguns by

juveniles, stop accidents, and save lives.

(3) Federal law prohibits, except in certain

limited circumstances, anyone under 18

years of age from knowingly possessing a

handgun, or any person from transferring a

handgun to a person under 18.

(4) A knowing violation of the prohibition

against selling, delivering, or otherwise

transferring a handgun to a person under the

age of 18 is, under certain circumstances,

punishable by up to 10 years in prison.

Note: ATF I 5300.2 provides the complete

language of the statutory prohibitions and

exceptions provided in 18 U.S.C. 922(x) and

the penalty provisions of 18 U.S.C. 924(a)(6).

The Federal firearms licensee posting this

sign will provide you with a copy of this

publication upon request. Requests for

additional copies of ATF I 5300.2 should be

mailed to the ATF Distribution Center, P.O.

Box 5950, Springfield, Virginia 22150–5950.

(f) The sign required by paragraph (d)

of this section need not be posted on the

premises of any licensed importer,

manufacturer, or dealer whose only

dispositions of handguns to

nonlicensees are to nonlicensees who

do not appear at the licensed premises

and the dispositions otherwise comply

with the provisions of this part.

Signed: May 28, 1998.

John W. Magaw,

Director.

Approved: June 6, 1998.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff

and Trade Enforcement).

[FR Doc. 98–18546 Filed 7–10–98; 8:45 am]

BILLING CODE 4810–31–P